Polkadot (DOT) chart technicals suggest it may rally to a new record high near $75 if DOT can manage to close above its $41-$43 range decisively.That’s according to a classic bullish reversal setup known as an Inverse Head and Shoulders (H&S) that forms when the price undergoes three selloffs during a period of market consolidation. Specifically, the pattern contains an initial selloff, followed by a short-term price rally and another—deeper—selloff. That leads to one more small correction to the upside, followed by another selloff that bottoms out near/at the lowest level of the first selloff.Inverse Head and Shoulders pattern illustration. Source: ThinkMarketsThe first and last selloffs represent “left” and “right” shoulders, respectively, while the second selloff represents the “head.” On the other hand, the level around which all the short-lived rallies top out represents the “neckline” of the head and shoulders pattern.Traditional analysts typically calculate the H&S upside target from the neckline resistance by measuring the maximum distance between it and the head formation.So it appears, Polkadot has been forming a similar bullish pattern on its weekly chart, as shown below.DOT/USD weekly price chart featuring inverse head and shoulders setup. Source: TradingView.comThe maximum distance between DOT’s neckline and the head’s bottom comes out to be nearly $31. Therefore, a successful bullish breakout above the neckline range of $41-$43 puts the next long-term target at approximately $75.Parachain Auctions coming in NovemberThe inverse H&S pattern emerged as DOT rallied by almost 30% this past week to reach a five-month high at around $44. At the core of its weekly uptrend was a price boom across the crypto market, as well as the news of Polkadot’s first Parachain Auctions going live on Nov 11.In detail, Polkadot’s Parachains are parallelized, application-specific chains — child ledgers tethered to a single parent ledger called Relay Chain. Due to their parallel nature, Parachains tend to process multiple transactions simultaneously and maintain and record their data on the main ledger by communicating with other chains.Related: Polkadot to debut parachain auctions after governance voteThat comes as a break from the method of queuing transactions and processing them sequentially.5 years after the vision of a heterogeneous multichain framework was first outlined in the Polkadot Whitepaper, parachains are now ready to launch on Polkadot. Motion 118, to schedule the first auctions, has passed council & now gone to public referendum.https://t.co/8pt3aT4vO3— Polkadot (@Polkadot) October 13, 2021DOT, which serves as a utility token for fees, governance, interoperability, and bonding inside the Polkadot ecosystem, rallied by more than 24% after the Parachain announcement.Next, Polkadot aims to introduce a cross-chain feature that would enable its relay chain to external blockchains (Bitcoin, Ethereum, etc.) via specialized smart contracts. Meanwhile, the project also plans to launch “in-built bridging modules” that would enhance the interoperability of external blockchains with Polkadot. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Bitcoin (BTC) challenged brand-new support levels on Oct. 14 after overnight successes took the market past $58,000 BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBitcoin “dips” to near $57,000Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it reversed towards $57,000 after hitting highs of $58,540 on Bitstamp.The moves mimicked the first time Bitcoin had attacked $58,000 in February — several attempts interspersed by consolidation, followed ultimately by a run to April’s all-time highs.Despite on-chain indicators showing that Bitcoin is a different beast in Q4, however, the mood was just as bullish this time around.”Bitcoin is most likely just continuing this grind towards the all-time highs,” Cointelegraph contributor Michaël van de Poppe wrote in his latest Twitter update. “Great bounce from $54K. Highly doubt we’ll see a retest at $50K happening.”Cementing $50,000 as support — albeit for a second time in 2021 — would form a clear signal on the market trajectory as pundits gear up for what they expect to be an explosive end to the year.For trader and analyst Rekt Capital, however, there was potential cause for concern this week. Zooming out, BTC/USD has failed to close a weekly candle above $60,000, and a repeat performance could likewise spell a copycat correction#BTC has successfully retested its Daily Bull Flag thus farBut Bitcoin is still below major Weekly resistance (red)In fact, any sort of Weekly Close below $60000 has historically preceded a $BTC retrace from these highs#Crypto #Bitcoin pic.twitter.com/n9vFaaalVM— Rekt Capital (@rektcapital) October 13, 2021That leaves bulls until Sunday to crack a historical watermark, something which may still be helped before Monday’s approval decision on a futures-based exchange-traded fund (ETF).Polkadot breakout headlines altcoin returnAltcoins meanwhile saw brief respite from weakness in the face of “Bitcoin Season.”Related: Price analysis 10/13: BTC, ETH, BNB, ADA, XRP, SOL, DOGE, DOT, LUNA, UNIThe exception was Polkadot (DOT), up 28% in a week on news that its auctions would finally begin next month — a key original feature five years in the making.DOT/USD 1-hour candle chart (Kraken). Source: TradingViewThe largest altcoin Ether (ETH) managed 5.3% daily gains, with all of the top ten cryptocurrencies by market cap trading higher on the day as Bitcoin slowed.